According to recent reports by the Wall Street Journal and Bloomberg Businessweek, mining investments in Mexico real estate is currently experiencing a significant boom, jumping an impressive 60 percent in 2011 to $5.6 billion. According to Canimex, the nation’s mining chamber, mining companies are expected to invest an additional $7.6 billion in 2012.
“2011 investments exceeded the chamber’s previous report, ” stated Sergio Almazan, who is the head of Canimex in Mexico City this July. "We’re seeing that Mexico can compete with anywhere in Latin America in attracting mining investment.”
Mexico is reportedly already the world’s top silver producer, accounting for 27 percent of the nation’s output last year alone. This is compared with gold at 25 percent and copper at 20 percent.
In fact, according to the Wall Street Journal, “here in Mexico, a new gold rush is under way.” Canada’s Goldcorp Peñasquito site is poised to produce at least 500,000 ounces of gold this year, making it the company’s most prolific mine and Mexico’s largest to date. In other areas of Mexico, highly concentrated deposits of gold have attracted a variety of companies to explore, invest and buy up land.
“People had said everything had been discovered in Mexico, ” stated Richard Whittall, CEO of Canada’s Newstrike Capital, which discovered a large gold deposit recently the size of a skyscraper in the mountains of Guerrero. “Now you’re seeing a renaissance.”
According to Bloomberg, Mexico also rose to be the number one destination in Latin America for investment by companies interested in exploration for non-iron metals in 2011, and was fourth worldwide, coming in behind Canada, Australia and the United States.
“As long as metals prices remain at good levels, we’ll continue to see this interest in investing, ” shared Almazan.
Mexico’s mining industry currently employs nearly 330,000 individuals throughout the country. It added more than 25,000 new jobs in 2011 and is expected to add at least 18,000 more in 2012, according to Bloomberg.